S-Oil(010950) said in a regulatory filing on the 3rd that operating profit on a consolidation basis in the second quarter came to 965 billion won, turning to a profit from a loss a year earlier on a preliminary basis.
Revenue for the same period rose 40.9% to 11.3435 trillion won, and net profit also turned to a profit at 514.6 billion won.
An S-Oil(010950) official said, "Despite lower oil prices, we maintained solid operating profit on the back of strong refining margins and lube spreads," and noted, "With global crude and product inventories markedly low due to supply disruptions, tight supply-demand conditions are expected to continue in the second half, keeping the market firm."
In the refining institutional sector, revenue was 9.0293 trillion won and operating profit was 532.4 billion won. Crude prices stayed elevated during the quarter and then plunged at the end of June when the closure of the Strait of Hormuz was temporarily lifted. Refining margins climbed sharply as supplies of refined products were tight.
In the petrochemical institutional sector, revenue was 1.0125 trillion won, with an operating loss of 44.8 billion won. Spreads for paraxylene (PX) and polypropylene (PP) narrowed, while spreads for benzene (BZ) and propylene oxide (PO) increased.
Next, the lubricants institutional sector posted revenue of 1.3017 trillion won and operating profit of 477.4 billion won. For base oil, supply fell short due to production disruptions in the Middle East and logistics constraints from the closure of the Strait of Hormuz, pushing spreads to an all-time high.
Meanwhile, the Shaheen project is set to begin commercial operations early next year. It is currently undergoing verification to confirm mechanical completion. Trial runs are planned for the second half of this year.